Visual Effects Global Market Report 2024

The global visual effects market has grown rapidly in recent years. It will grow from $10.73 billion in 2023 to $11.82 billion in 2024 at a compound annual growth rate (CAGR) of 10.1%. The growth observed in the historical period can be attributed to factors such as increasing expectations in user experience, budget allocations and investments, the rise of digital streaming platforms, the development of talent and skills within the industry, and overall growth in the film and entertainment sector.

The global visual effects market is expected to see rapid growth in the next few years. It will grow to $17.51 billion in 2028 at a compound annual growth rate (CAGR) of 10.3%. The anticipated growth in the forecast period can be attributed to several factors, including the evolution of content consumption patterns, the continued growth of streaming platforms, advancements in augmented and virtual reality technologies, the globalization of media content, and an increasing demand for realistic visuals. Major trends expected in the forecast period include the integration of practical and digital effects, the adoption of sustainable production practices, a focus on personalization and customization in visual effects, the utilization of remote collaboration tools, the creation of user-generated visual effects content, and an increased emphasis on environmental and climate considerations within the industry.

The visual effects market is anticipated to experience significant growth due to the increasing utilization of digital video streaming services. These platforms, delivering video content over the internet, necessitate high-quality visual effects for TV shows and movies. The surge in demand for such services is exemplified by Netflix's quarterly report in 2022, which indicated an addition of 2.41 million subscribers in Q3, totaling 223.09 million globally by Q4 and Q5. As digital video streaming continues to expand, it drives the need for enhanced visual effects, contributing to the growth of this market segment.

Another contributing factor to the projected growth of the visual effects market is the escalating demand within the gaming industry. Visual effects play a pivotal role in creating engaging and immersive gaming experiences, adding visual allure and authenticity. The burgeoning demand within this sector is evident from a survey conducted by Uswitch Limited in May 2023, revealing that 76% of respondents participated in online video gaming in 2022. As the gaming industry continues to expand, the need for sophisticated visual effects technologies grows, fueling the development of this market segment.

Technological advancements serve as a significant trend shaping the visual effects market, with industry leaders focused on deploying AI-powered solutions to reinforce their market positions. For instance, in July 2023, Netflix Inc. unveiled an AI-powered green screen technology aimed at revolutionizing visual effects. This AI-driven innovation aims to enhance the accuracy and realism of visual effects in real-time, surpassing traditional green screen editing by significantly reducing the time required for scene editing. The introduction of this magenta green screen signifies a substantial leap forward in the film and television industries, showcasing the transformative impact of artificial intelligence on visual effects production.

Leading companies within the visual effects market are strategically focusing on pioneering products, particularly AI-powered tools, to stimulate revenue growth in their sector. These AI-based visual effect tools encompass diverse software and technologies leveraging artificial intelligence to streamline and enhance various aspects of visual effects (VFX) production. An illustration of this trend is Wonder Dynamics, a US-based AI film company, which launched Wonder Studio in March 2023. Wonder Studio simplifies video production with computer-generated imagery (CGI) through easy button clicks, eliminating the need for expensive production machinery or intricate 3D software. The platform aims to democratize CGI-heavy filmmaking, enabling creators to craft visually stunning movies at reduced costs. Leveraging artificial intelligence, Wonder Studio automates character monitoring and scene cut identification, significantly reducing the labor-intensive frame-by-frame visual effects process.

In a strategic move in October 2022, Sony Pictures Entertainment Inc., a prominent US-based mass media and entertainment studio, acquired Pixomondo Global for an undisclosed sum. This acquisition aligns with Sony Pictures Entertainment's objective to bolster its expertise in virtual production and visual effects, aiming to deliver innovative and superior content to global audiences. This strategic integration equips Sony Pictures Entertainment with enhanced capabilities to meet the escalating demand for top-notch visual content in the entertainment industry. By augmenting its position in the swiftly evolving virtual production and visual effects landscape, the acquisition of Pixomondo Global strengthens Sony Pictures Entertainment's portfolio and readiness to cater to evolving market needs. Pixomondo Global, a US-based visual effects provider, adds substantial value to Sony Pictures Entertainment's offerings within the visual effects domain.

Major companies operating in the visual effects market report are Digital Domain Holdings Limited, Rodeo FX Inc., Hydraulx Visual Effects Inc., Sony Pictures Entertainment Inc., Technicolor SA, Digital Idea Corp., Deluxe Media Inc., Blackmagic Design Pty. Ltd., Foundry Visionmongers Limited, Zoic Studios LLC, Animal Logic Pty Ltd., RE:Vision Effects Inc., Worldwide FX, Video Copilot and Final Image Inc., Framestore Group Limited, Deluxe Entertainment Services Group Inc., Eastman Kodak Company, Lucasfilm Ltd., BUF Compagnie, The Moving Picture Company Limited, Cinesite Visual Effects Studio Limited, ImageWorks Inc., Double Negative Visual Effects Limited, Scanline VFX Inc., Animal Logic, Silicon Graphics International Corp., Weta Digital Limited, The Mill Film, MPC Limited, Method Studios Inc., Pixomondo GmbH

North America was the largest region in the visual effect market in 2023. The regions covered in the visual effects market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the visual effects market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Primary categories of visual effects encompass matte painting, simulation FX, compositing, motion capture, character and creature animation, concept art, previs or pre-visualization, and other specialized types. Concept art represents the visual depiction of the initial idea for a movie project. The components involved in visual effects include software, hardware, and services. These applications find use across various industries, including movies, advertisements, TV shows, and gaming.

This report provides visual effects market statistics, including visual effects industry global market size, regional shares, competitors with a visual effects market share, detailed visual effects market segments, market trends and opportunities, and any further data you may need to thrive in the visual effects industry. This visual effects market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The visual effects market includes revenues earned by providing professional services, system integration, support, and maintenance services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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